Last week we sent out our newsletter and we highlighted an article about raising rates. Who would have known it was going to be such a controversial topic?!?
We got a lot of responses both for and against raising rental rates next year. The pros felt that they could justify raising their rates especially since many stated they had not raised their rates in the past year or two. The cons were quite vocal stating the economy was the reason that they will not be raising their rates.
Last year I had a healthy debate (you might call it an argument) with a good friend of mine who also owns where I do. She lowered her rates last year and I raised mine by 25%. She said I was crazy; I said she was crazy (two good friends and also very strong willed women.) Anyhow, last week we shared our year end results and yes, her lower rates did indeed yield her more nights booked than my higher rates. But…you knew there would be a but…Surprise, surprise, we both made the same amount of money!
I told my friend I win because I worked smarter not harder--less coordination with guests, housekeepers, etc. and less wear and tear on my home. No eating crow for me!
Whatever you decide to do, raise your rates, keep them the same or even lower them there is no absolute right or wrong answer. It’s your decision.